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Friday, March 29, 2024

SEC reviews Suncity Group investment in Suntrust Home

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The Securities and Exchange Commission is reviewing the investment of Hong Kong’s Suncity Group Holdings Ltd. in Suntrust Home Developers Inc. of tycoon Andrew Tan to determine if some of the provisions of the Securities Regulation Code were violated.

SEC commissioner Ephyro Luis Amatong said in an interview Friday the Market Securities and Regulation Department was conducting the review.

Amatong said the review would determine if the Suncity Group would be required to conduct a tender offer to minority shareholders and possible violations that were committed. 

“Initial representation to us is that there is no need for tender offer because control was achieved by the Hong Kong entity through purchases from the market. But MSRD is now looking to into that claim to verify. We are determining if no tender offer would have been appropriate,” Amatong said.

Suncity Group through its wholly-owned unit Fortune Noble Ltd. last month acquired a 51-percent stake in Suntrust by purchasing 847.5 million in secondary shares through the open market from October 23 to 25.

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Suntrust will also issue 5 billion common shares out of the increase in the company’s authorized capital stock. Fortune will subscribe 2.55 billion shares of 5 billion shares while Suntrust parent Megaworld Corp. will buy 2.177 billion shares.

The Philippine Stock Exchange earlier suspended the trading of Suntrust shares, saying the deal was covered by the backdoor listing rule of the exchange.

It lifted the trading suspension after Suntrust submitted a comprehensive disclosure on the transaction.

Meanwhile, PSE president Ramon Monzon said the exchange was still waiting for the SEC’s stand on whether Suncity would be required to conduct a tender offer or not.

Suncity acquired the majority stake in Suntrust in a bid to join the development of Westside City Resorts World, an integrated resort and casino also owned by billionaire businessman Andrew Tan.

Suntrust under the agreement will lease the Westside City Resorts project site for development of the main hotel casino. Suntrust will also be the appointed as the sole and exclusive operator and manager of the main hotel casino.

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